NOAA awards $53.2M to L3Harris Technologies for Space Weather Ground Segment C2, a sole-source contract

Contract Overview

Contract Amount: $53,246,426 ($53.2M)

Contractor: L3harris Technologies, Inc.

Awarding Agency: Department of Commerce

Start Date: 2021-02-04

End Date: 2026-04-29

Contract Duration: 1,910 days

Daily Burn Rate: $27.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE PURPOSE OF THIS CONTRACT AWARD IS TO PROVIDE DEVELOPMENT, DEPLOYMENT, AND OPERATIONS SUPPORT FOR NOAA'S SPACE WEATHER FOLLOW ON GROUND SEGMENT COMMAND AND CONTROL (SWFO GS C2) ELEMENT.

Place of Performance

Location: PALM BAY, BREVARD County, FLORIDA, 32905

State: Florida Government Spending

Plain-Language Summary

Department of Commerce obligated $53.2 million to L3HARRIS TECHNOLOGIES, INC. for work described as: THE PURPOSE OF THIS CONTRACT AWARD IS TO PROVIDE DEVELOPMENT, DEPLOYMENT, AND OPERATIONS SUPPORT FOR NOAA'S SPACE WEATHER FOLLOW ON GROUND SEGMENT COMMAND AND CONTROL (SWFO GS C2) ELEMENT. Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Significant investment in critical space weather monitoring infrastructure. 3. Cost-plus-fixed-fee structure may incentivize cost escalation. 4. Long-term contract duration (approx. 5 years) suggests a need for sustained support. 5. Focus on development, deployment, and operations indicates a comprehensive support requirement. 6. Contractor L3Harris Technologies has a substantial presence in defense and aerospace sectors.

Value Assessment

Rating: fair

The contract's value of $53.2 million over approximately five years for development, deployment, and operations support for NOAA's Space Weather Follow On Ground Segment Command and Control (SWFO GS C2) element appears to be within a reasonable range for complex IT systems. However, without specific benchmarks for similar space weather command and control systems or detailed cost breakdowns, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure, while common for development efforts where costs are uncertain, carries inherent risks of cost overruns compared to fixed-price contracts. The lack of competition further complicates direct price comparisons.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when there is an urgent need that precludes a full and open competition. The lack of competition means that NOAA did not benefit from the price discovery and potential cost savings that typically arise from a competitive bidding process. This can lead to higher prices than might be achieved in a competitive environment.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure. The government did not explore potentially more cost-effective solutions from other vendors.

Public Impact

Benefits NOAA's National Weather Service in its mission to provide space weather forecasts and warnings. Supports the development and operation of critical infrastructure for monitoring solar activity and its impact on Earth. Enhances the nation's ability to predict and mitigate the effects of space weather events on technology and infrastructure. Contributes to the scientific understanding of space weather phenomena. The geographic impact is national, as space weather affects the entire United States and its assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Cost-plus-fixed-fee contract type can lead to cost overruns if not managed carefully.
Long contract duration may indicate potential for scope creep or evolving requirements.
Lack of publicly available performance metrics makes it difficult to assess contractor efficiency.

Positive Signals

Addresses a critical national need for space weather monitoring and forecasting.
Contractor L3Harris Technologies is a well-established entity with experience in complex systems.
Definitive contract award suggests a clear scope and defined period of performance.
Focus on development, deployment, and operations indicates a comprehensive approach to system lifecycle.

Sector Analysis

The IT services sector, particularly within government contracting, is vast and competitive. This contract falls under Computer Systems Design Services (NAICS 541512), a segment focused on designing, developing, and integrating computer systems. NOAA's investment in space weather infrastructure is a niche but critical area within the broader IT and aerospace sectors. Comparable spending benchmarks are difficult to establish without more specific details on the system's complexity and scope, but large-scale government IT development and operations contracts can range from tens to hundreds of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. As a sole-source award to a large prime contractor, L3Harris Technologies, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if any small business participation is planned or mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce and NOAA's program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The Inspector General for the Department of Commerce may conduct audits or investigations into the contract's performance and financial management. Transparency is limited by the sole-source nature and the proprietary aspects of system development, but contract award details are publicly available through federal procurement databases.

Related Government Programs

NOAA Satellite Operations
Space Weather Prediction Center
National Science Foundation - Geospace Programs
NASA Heliophysics Missions
Department of Defense - Space Domain Awareness

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Long contract duration
Lack of public performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $53.2 million to L3HARRIS TECHNOLOGIES, INC.. THE PURPOSE OF THIS CONTRACT AWARD IS TO PROVIDE DEVELOPMENT, DEPLOYMENT, AND OPERATIONS SUPPORT FOR NOAA'S SPACE WEATHER FOLLOW ON GROUND SEGMENT COMMAND AND CONTROL (SWFO GS C2) ELEMENT.

Who is the contractor on this award?

The obligated recipient is L3HARRIS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $53.2 million.

What is the period of performance?

Start: 2021-02-04. End: 2026-04-29.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. While the specific justification is not detailed, common reasons for sole-source awards include unique capabilities possessed by a single contractor, proprietary technology, urgent and compelling needs that preclude competition, or if previous competitive procurements failed to yield adequate offers. For NOAA's SWFO GS C2 element, it's possible that L3Harris Technologies holds specific intellectual property, has unique expertise in a critical component, or that the program's evolution from a prior contract necessitated a sole-source continuation to avoid significant disruption or cost. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required and should outline these reasons in detail.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IT development projects?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development or complex IT projects where the scope and costs are not well-defined at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it differs significantly from fixed-price contracts, where the contractor bears the risk of cost overruns. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts, CPFF offers less direct incentive for exceeding performance targets or achieving specific cost efficiencies beyond the fixed fee. For taxpayers, CPFF contracts carry a higher risk of cost escalation than fixed-price contracts if not rigorously monitored and managed by the government.

What are the potential risks associated with the long duration (approx. 5 years) of this contract?

A contract duration of approximately five years (1910 days from award date to end date) for IT development, deployment, and operations presents several potential risks. Firstly, technology can rapidly evolve, and requirements may change significantly over such a long period. This could lead to the system becoming outdated before its full lifecycle or require costly modifications. Secondly, long-term contracts can increase the risk of scope creep, where additional work or features are added without adequate adjustments to cost or schedule, potentially benefiting the contractor. Thirdly, maintaining consistent oversight and performance management over an extended period can be challenging for the government agency. Finally, if the initial cost estimates or fixed fee were based on assumptions that prove inaccurate over time, the government might end up paying more than initially anticipated for the services rendered.

What is L3Harris Technologies' track record with similar NOAA or space-related IT contracts?

L3Harris Technologies is a major aerospace and defense contractor with a significant history of providing complex IT, C2, and systems integration services to various government agencies, including NASA and the Department of Defense. While specific details on their past performance with NOAA for space weather ground segments are not provided in the data, their extensive experience in areas like satellite operations, command and control systems, and mission-critical IT infrastructure suggests a strong capability. Their track record generally involves large, complex programs. A thorough review would require examining past performance evaluations, any contract disputes, and the successful delivery of comparable systems to assess their suitability and reliability for this specific NOAA requirement.

Are there any publicly available performance metrics or Key Performance Indicators (KPIs) for this contract?

The provided data does not include any specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such metrics would be detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These KPIs would define the standards for successful delivery, such as system uptime, data processing speed, response times for alerts, or accuracy of forecasts. Without access to these specific contract documents, it is impossible to assess the contractor's performance against defined objectives or to evaluate the effectiveness of the delivered services. Publicly available contract data often omits these granular performance details.

How does this $53.2 million award compare to historical spending on similar space weather infrastructure by NOAA or other agencies?

Comparing this $53.2 million award requires context on the scope and nature of 'similar' space weather infrastructure. NOAA's Space Weather Follow On (SWFO) program aims to replace aging infrastructure and enhance capabilities. The Follow On program itself has had various components and funding cycles. This specific contract covers the Ground Segment Command and Control (GS C2) element, which is a crucial but specific part of the overall SWFO mission. Historical spending on comparable ground segment C2 systems for space-based assets can vary widely depending on complexity, technology generation, and whether it includes development, deployment, and long-term operations. Without a direct comparison of the functional scope and lifecycle phase of other ground segment C2 contracts, it's difficult to definitively benchmark this $53.2 million award. However, it represents a significant investment in a critical national capability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 2400 PALM BAY RD NE, PALM BAY, FL, 32905

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,764,664

Exercised Options: $54,764,664

Current Obligation: $53,246,426

Actual Outlays: $21,996,505

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,773,912

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline